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FTX Bankruptcy: FTX Debtors Agitate, Demand that the company Return a $93M Donation

There has been agitation from all corners following the latest development on the FTX issue. News from that quarter says that the majority of angry FTX creditors have demanded that the company return all the money they’d received as donations from some US politicians.

Industry analysts believe that there is nothing wrong with the company seeking donations, but there is more to the current situation than beats the eye. Reports said that the so-called donors are likely to be those people who benefited from the company’s closure.

One of the names mentioned is Sam Bankman-Fried (SBF), a prominent political figure in the US political space. The customers unanimously agreed that the said monetary donation must be returned. The latest information by Kroll disclosed that on Sunday, the whole $93 million withdrawn between March 2020 to November 2022 is set to be retrieved.

In yet another revelation, a  $2 billion internal loans, a $400M investment which was said to be made in Modolo Capital, and yet another $2.1 billion, which they said to be used for repurchasing some Series A shares from Binance exchange is said to be returned in the future.

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According to some industry commentators, other areas that the recovery team from FTX is expected to also look at are some of the funds the management had claimed to have channeled to media advertising, promotions, and campaigns, which were funded by Sam Bankman-Fried   (SBF).

Currently, a total of 190 lawmakers have been accused of donating to FTX, although investigations claim that there may be more; this is evident from the current major opposition from politicians believed to be mainly Democrats who are presently serving their first term in office.

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Another investigative report gotten from an anonymous source said that there are other politicians (names withheld) implicated in this case who have secretly dumped their shares to charity in a bid to preserve their reputation.

In a statement issued by the debt recovery arm of the embattled crypto firm, they made it clear that the fact the implicated parties in the case are donating to the company doesn’t exonerate them from the legal implications of their actions.

This means that the donations won’t reflect on the amounts they owe the company; all debtors are required to pay their debts in full. They have also gone ahead to open an official channel that those involved can use to return the said donations.

Legal experts who are familiar with this case think that the amount of donations received so far is enough to plunge some indicated lawmakers into major financial debt. News had it that since Sam Bankman-Fried was removed from the picture, the popular crypto exchange firm, with the likes of John Ray III as the CEO, has continued to focus on the path of recovering all the needed funds.

From the available information made public by an internal source, it was gathered that the company is working on recouping as much funds as possible to enable them to settle as many customers as it can. The settlement process comes in different phases; the first phase will be the small claims, followed by the ones with average investment. The CEO was also heard saying that the exchange would resume operations as soon as all the claims had been settled.

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Meanwhile, analysts, on the other hand thinks that Sam Bankman-Fried is not off the radar yet; he has some legal cases to answer. According to various reports, Sam is accused of going against US campaign laws and a deliberate attempt to defraud the US public.

These are believed to be the two major criminal cases that the popular politician is expected to acquit himself of on October 2nd, 2023. And at the moment, Mr. Sam is expected to limit its spending to less than $1000, as well as a no-contact ban to either previous or present employees who are meant to serve as witnesses in future court cases.


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Alexander Fyodorov (Ukraine)

Alexander Fedorov is a new writer on Tokenhell, his articles are about on cryptocurrency news and platform reviews. We recommend keeping an eye on his latest posts as they are always very informative and super interesting.

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